Volumes increased 7.3% to 277.1 kmt compared to 258.3 kmt in the
third quarter of 2015 with increases in both Specialty and Rubber

Revenue in the third quarter of 2016 amounted to €259.7 million
compared to €278.7 million in the third quarter of 2015 mostly
due to the impact of lower feedstock costs being passed through to
customers with pricing agreements indexed to costs. Underlying
revenues (excluding the impact of feedstock cost pass throughs)
increased by €19.0 million in line with the increase in volumes

Net Income was a loss of €3.8 million compared to €12.1
million profit in the third quarter of 2015 following an €18.9 million
after tax cost for restructuring the rubber black network associated
with the closure of our plant in Ambès, France. Accordingly EPS was a
loss of €0.06

Pre tax cash costs of €16.7 million and non cash impairments of
€11.2 million were recorded for the rubber black network restructuring
resulting in a decrease of Operating Result (EBIT) by €23.7 million to
€3.4 million from €27.1 million in the third quarter of 2015

Adjusted EBITDA1 increased by 15.4% to
€55.4 million compared to €48.0 million in the third quarter of 2015

Adjusted EPS1 rose to €0.33 compared to
€0.32 in the third quarter of 2015

Specialty Carbon Black Adjusted EBITDA increased by 18.6% to €33.2
million in the third quarter of 2016 from €28.0 million in the third
quarter of 2015 as a result of 7.4% volume growth, impact of lower raw
material costs and improved product mix

Rubber Carbon Black Adjusted EBITDA increased by €2.2 million, or
11.0% to €22.2 million in the third quarter of 2016 from €20.0 million
in the third quarter of 2015 due to the positive impact from feedstock
surcharges as well as a solid performance of the recently acquired
facility in China

Cash flow from operating activities totaled €44.9 million, with the
cash balance at September 30, 2016 totaling €64.7 million after
voluntary debt repayments of €40.0 million and dividend payments of
€30.0 million year to date. Dividend payments and debt repayments in
the third quarter of 2016 were €10.0 million and €20.0 million
respectively

Term Loan debt was repriced to reduce the cost of debt by 100 basis
points to an interest rate of 3.75%, effective September 30, 2016
which is expected to result in annual interest savings of about €6.0
million pre-tax and earnings per share improvement of about 6 to 7
euro cents

SENNINGERBERG, Luxembourg--(BUSINESS WIRE)--Orion Engineered Carbons S.A. (“Orion” or the “Company”) (NYSE: OEC), a
worldwide supplier of specialty and high-performance carbon black, today
announced results for its third quarter of 2016.

“We continue to execute extremely well this year, both operationally and
strategically, delivering another quarter of growth in all of our key
financial metrics,” said Jack Clem, Orion’s Chief Executive Officer. “It
is especially gratifying in this quarter to report on the strong
performance of our specialty business as well as an improving
performance in our rubber business. On the operational side, we achieved
another strong quarter of volume growth which reached 7.3%, with
contributions from both businesses. In addition, in the face of a
stabilizing, albeit a still challenging oil price environment, we
realized double digit Adjusted EBITDA gains in both the Specialty and
Rubber businesses and saw significant improvements in the Adjusted
EBITDA margin of each. Although we generated a small loss of €3.8
million for the quarter as a result of accruals taken for the Ambès
closure, our total Adjusted EBITDA of €55.4 million, in what is a
seasonally slower quarter in some of our regions, was especially
rewarding to see. Our specialty business continues to benefit from lower
raw material costs, while feedstock surcharges are helping the rubber
business to recover. Strategic execution remains on track also with the
planned closure of the rubber black plant in France. While we appreciate
the contributions this plant has made in the past, the move is a part of
our larger plan to improve the competitiveness of our operational
network. In support of this, we intend to restructure our Korean
production network to consolidate and upgrade capacity in that country
into one strengthened facility focusing on high value specialty and
rubber products.”

“The cash flow from the business remained robust” continued Mr. Clem.
“Cash flow from operations was €44.9 million in the quarter, well ahead
of our requirements for maintenance capex, ongoing productivity
improvements, debt service and dividend coverage. Year-to-date, we have
voluntarily paid down €40 million of our debt, while maintaining a
stable cash position of roughly €65 million. This clearly demonstrates
that we continue to follow our capital allocation plan by reducing
leverage from 2.89x at the start of this year to 2.53x at the end of the
third quarter. Additionally, we reduced our interest expense on this
debt by repricing our term loan just before the end of the third
quarter, which is expected to save us an additional €6 million per year
going forward.”

1) See below for a reconciliation of non-IFRS financial measures to the
most directly comparable IFRS measures

In EUR

Fiscal Year

2016

Fiscal Year

2015

Third

Quarter

Third

Quarter

Volume (in kmt)

277.1

258.3

Revenue

259.7m

278.7m

Contribution Margin

115.9m

103.5m

Contribution Margin per Metric Ton (1)

418.1

400.8

Operating Result (EBIT) (2)

3.4m

27.1m

Adjusted EBITDA

55.4m

48.0m

Profit or (Loss) for the Period (Net Income) (2)

(3.8)m

12.1m

EPS (2)/(3)

-0.06

0.2

Adjusted EPS (4)

0.33

0.32

Notes:

(1)

The change in Contribution Margin per Metric Ton (CM/mT) between Q3
2016 and Q3 2015 reflects the impact of rubber price surcharges and
the benefit of pricing discipline in a lower raw material cost
environment in the Specialty Carbon Black segment as well as a
continuation in the shift of total group volumes towards specialty,
mechanical rubber goods and technical tire grades.

(2)

Includes expenses relating to restructuring totaling €27.9 million
of which cash relevant costs amounts to €16.7 million and non-cash
impairments €11.2 million.

(3)

EPS calculated using profit or (loss) for the period (Net Income)
and weighted number of shares outstanding in the respective quarter.
The change in EPS is primarily associated with the costs associated
with the after tax cost for restructuring the rubber black network
associated with the closure of our plant in Ambès, France.

(4)

Calculated using profit or loss (Net Income) for the respective
quarter adjusted for amortization of acquired intangible assets,
amortization of transaction costs and foreign currency effects
impacting financial results and other adjustment items and
restructuring expenses (all adjustments on a net of tax basis
assuming group tax rate) and weighted number of shares outstanding
in the respective quarter.

Third Quarter 2016 Overview

Volumes increased by 18.8 kmt resulting in total volume of 277.1 kmt in
the third quarter of 2016 compared to 258.3 kmt in the third quarter of
2015. This 7.3% increase reflected stronger volumes in both the
Specialty and Rubber Carbon Black businesses. Our new business in
Qingdao, China (OECQ), acquired during the fourth quarter of 2015,
accounted for 15.7 kmt of the volume increase.

While volumes in the quarter rose, revenue decreased by €19.0 million,
or 6.8%, to €259.7 million in the third quarter of 2016 from €278.7
million in the third quarter of 2015. This revenue decrease was due
primarily to sales price declines resulting from the pass through of
lower feedstock costs to customers with agreements that link price to
the cost of feedstock, partially offset by additional volumes as well as
impacts from feedstock surcharges becoming effective.

Contribution Margin increased by €12.4 million, or 11.9%, to €115.9
million in the third quarter of 2016 from €103.5 million in the third
quarter of 2015, driven by improved Rubber Carbon Black margins as a
result of the introduction of feedstock surcharges, strong volume growth
in our Specialty Carbon Black business and good performance of OECQ.

Gross Profit increased by €8.7 million to €82.8 million in the third
quarter 2016 from €74.1 million in the third quarter of 2015, with the
increase in contribution margin being partly offset by a higher
depreciation expense largely related to the acquisition of OECQ.

Adjusted EBITDA increased by about €7.4 million to €55.4 million in the
third quarter of 2016, or 15.4%, from €48.0 million in the third quarter
of 2015, reflecting the development of Gross Profit discussed above.
Specialty Carbon Black contributed 60% of the Adjusted EBITDA up from
58% in the prior year.

Quarterly Business Results

SPECIALTY CARBON BLACK

Q3 2016

Q3 2015

Y-o-Y

Comparison

Volume (kmt)

59.7

55.6

7.4%

Revenue (EUR/Millions)

94.7

95.6

(0.9)%

Gross Profit (EUR/Millions)

43.4

36.9

17.8%

Gross Profit/metric ton (EUR)

727.0

662.9

9.7%

Adjusted EBITDA (EUR/Millions)

33.2

28.0

18.6%

Adjusted EBITDA/metric ton (EUR)

556.4

504.2

10.4%

Adjusted EBITDA Margin

35.1%

29.3%

580 bps

Volumes for the Specialty Carbon Black business increased by 7.4% to
59.7 kmt in the third quarter of 2016 from 55.6 kmt in the third quarter
of 2015. OECQ has begun the planned shift of production to Specialty
Carbon Black contributing to the gain. Remaining growth reflected
increased global demand and further penetration of markets, with all
markets showing strength, but especially in Asia Pacific.

Revenue of the business decreased by €0.9 million, or 0.9%, to €94.7
million in the third quarter of 2016 from €95.6 million in the third
quarter of 2015. The impact of strong volume growth and favorable mix
was offset by price declines coming mostly from the pass through of
reduced feedstock costs to customers with index pricing.

Gross Profit increased by €6.5 million, or 17.8%, to €43.4 million in
the third quarter of 2016 from €36.9 million in the third quarter of
2015 driven by increased volumes, the effects of raw material costs and
improved mix.

Adjusted EBITDA increased by 18.6% to €33.2 million in the third quarter
of 2016 from €28.0 million in the third quarter of 2015, reflecting the
development of Gross Profit. Adjusted EBITDA margin was 35.1% in the
third quarter of 2016 compared to 29.3% in the third quarter of 2015, an
increase of 580 bps.

RUBBER CARBON BLACK

Q3 2016

Q3 2015

Y-o-Y

Comparison

Volume (kmt)

217.3

202.7

7.2%

Revenue (EUR/Millions)

165.0

183.1

(9.9)%

Gross Profit (EUR/Millions)

39.3

37.3

5.4%

Gross Profit/metric ton (EUR)

180.9

184.0

(1.7)%

Adjusted EBITDA (EUR/Millions)

22.2

20.0

11.0%

Adjusted EBITDA/metric ton (EUR)

102.1

98.6

3.6%

Adjusted EBITDA Margin

13.4%

10.9%

250 bps

Volumes for the Rubber Carbon Black business increased by 7.2% to 217.3
kmt in the third quarter of 2016 from 202.7 kmt in the third quarter of
2015, with volume growth of 14.6 kmt associated with the impact of the
acquisition of OECQ in the last quarter of 2015. Organic volume growth
was flat.

Revenue decreased by €18.1 million, or 9.9%, to €165.0 million in the
third quarter of 2016 from €183.1 million in the third quarter of 2015.
This revenue decrease was due to price declines resulting from pass
through of lower cost feedstock to customers based on index-pricing
agreements, and to a lesser extent to regional mix effects partly offset
by the positive impact of revenues from OECQ and feedstock surcharges.

Gross profit increased by €2.0 million, or 5.4%, to €39.3 million in the
third quarter of 2016 from €37.3 million in the third quarter of 2015.
This increase was associated with the positive impact of OECQ and the
favorable impact of a full quarter of feedstock surcharges, which served
to offset persistently negative feedstock cost impacts. Reduced
cogeneration earnings as a result of lower global energy prices also
continue to negatively influence gross profit development.

Adjusted EBITDA increased by €2.2 million, or 11.0% to €22.2 million in
the third quarter of 2016 from €20.0 million in the third quarter of
2015, reflecting the development of Gross Profit.

As part of the continuing strategic repositioning of the Rubber
business, in May 2016 the Company's German operating subsidiary
terminated, effective December 31, 2016, the Contract Manufacturing
Agreement currently in place between the Company's German operating
subsidiary and the Company's French subsidiary, Orion Engineered Carbons
SAS ("OEC SAS"), which has a plant in Ambès with a maximum capacity of
mostly standard rubber grades of 50 kmt per year. Consequently, the
management of OEC SAS concluded consultations with the local Works
Council at this facility to implement a restructuring and down staffing
with a cessation of production at the site by the end of 2016. Expenses
relating to this restructuring activity have been estimated to total
€27.9 million of which cash relevant costs amount to €16.7 million and
non-cash impairments €11.2 million. These costs have been recognized in
the three months ended September 30, 2016.

Balance Sheet and Cash Flow

As of September 30, 2016, the Company had cash and cash equivalents of
€64.7 million which is essentially at the same level as seen on December
31, 2015 after having voluntarily made debt repayments of €40.0 million
and paying aggregate dividends of €30.0 million year to date, while
funding the Company's capex program. Compared to June 30, 2016, cash and
cash equivalents decreased by €0.2 million.

The Company’s non-current indebtedness as of September 30, 2016 was
€598.7 million composed of the non-current portion of term loan
liabilities (€609.3 million less transaction costs of €10.8 million).
Net indebtedness, including €7.2 million current portion of term loan
liabilities, was €551.8 million, which represents a 2.53 times LTM
Adjusted EBITDA multiple down from 2.73 times in the previous quarter
and down from 2.89 times at the end of 2015.

Cash inflows from operating activities in the third quarter of 2016
amounted to €44.9 million, primarily consisting of provision for costs
associated with the after tax cost for restructuring the rubber black
network associated with the closure of our plant in Ambès, France, a
consolidated loss for the period of €3.8 million, adjusted for
depreciation and amortization of €30.7 million and the exclusion of
finance costs of €9.4 million affecting net income. Net working capital
increased slightly as a result of higher oil prices during the quarter
and totaled €190.5 million as of September 30, 2016, compared to €181.4
million as of June 30, 2016 and €183.0 million as of December 31, 2015.

Cash outflows from investing activities in the third quarter of 2016
amounted to €10.2 million composed of capex expenditures for
improvements primarily in the manufacturing network throughout the
production system.

Cash outflows for financing activities in the third quarter of 2016
amounted to €35.2 million, consisting of a voluntary debt repayment of
€20.0 million, a dividend payment of €10.0 million, regular interest
payments of €9.8 million and regular debt repayment of €1.8 million.

Update on Production Footprint Alignment and 2016 Full Year Outlook

Jack Clem, Chief Executive Officer, addressed the rubber black
restructuring.“We are making the right strategic moves; foremost among
these is our ongoing initiative to re-align our manufacturing footprint
to expand our specialty business at above market growth rates while
continuing to concentrate on our more profitable mechanical rubber goods
and technical tire rubber products. As part of this footprint strategy
we are now well underway with preparation of the closure of our facility
in Ambès, France, and as recently announced for our facility in Yeosu,
Korea, the conversion of one tire grade carbon black production line
into a specialty and technical rubber grade production line.”

Mr. Clem continued, “In addition, after review of our operations in
Korea, we are announcing our intention to concentrate our Korean
production at one site, which will enable us to most effectively serve
the domestic Korean market and Asia-Pacific export customers, as well as
supporting supplies to the rest of the world. The pressures of high
labor costs, the cost and availability of essential raw material
feedstocks, and the continuing need to improve the productivity of our
production network are major drivers of this decision, with details to
be finalized by year end. In the course of transitioning to Yeosu,
additional capacity will be shifted to specialty and technically
demanding rubber products, supporting our strategy of expanding our
leadership in offering higher value added products required by our
customers. The consolidation is targeted to conclude in mid-2018.”

Concluded Mr. Clem, “We are having a solid year thus far in 2016 and are
tightening our guidance for the year to the range of €217 to €223
million Adjusted EBITDA. While we still have much work to do, we remain
well positioned to drive profitable volume growth and generate strong
cash flow, largely due to our product breadth, differentiation, and
innovation and technical expertise. We continue to take decisive steps
to address our footprint and maintain our strategic focus on shifting
more of our capacity to higher value-added products, as well as keeping
raw material pricing imbalances in focus. As a result, we remain
confident in our ability to generate strong cash flow to continue to:

Guidance for depreciation is estimated to be approximately €60 million
in 2016 and for amortization approximately €20 million, which includes
amortization of acquired intangibles of €13 million. Guidance for shares
outstanding is 59.3 million, before giving effect to any additional
share buybacks, with an underlying tax rate of about 36% on pre-tax
income and for capital expenditures of approximately €60 million in 2016.

Conference Call

As previously announced, Orion will hold a conference call tomorrow,
Friday, November 4, 2016, at 8:30 a.m. (EDT). The dial-in details for
the live conference call are as follow:

U.S. Toll Free:

1-877-407-4018

International:

1-201-689-8471

U.K. Toll Free:

0 800 756 3429

Germany Toll Free:

0 800 182 0040

Luxembourg Toll Free:

800 28 522

Luxembourg Local:

352 2786 0689

A replay of the conference call may be accessed by phone at the
following numbers through November 11, 2016:

U.S. Toll Free:

1-844-512-2921

International:

1-412-317-6671

Conference ID:

13646936

The webcast can be accessed on the Investor Relations section of the
Company’s website at: www.orioncarbons.com.
An Archived recording will be available there following the webcast.

To learn more about Orion, visit the company’s website at www.orioncarbons.com.
Orion uses its website as a channel of distribution for material Company
information. Financial and other material information regarding Orion is
routinely posted on the Company’s website and is readily accessible.

About Orion Engineered Carbons

Orion is a worldwide supplier of Carbon Black. We produce
high-performance as well as standard Gas Blacks, Furnace Blacks, Lamp
Blacks, Thermal Blacks and other Specialty Carbon Blacks that tint,
colorize and enhance the performance of polymers, plastics, paints and
coatings, inks and toners, adhesives and sealants, tires, and mechanical
rubber goods such as automotive belts and hoses. With approximately 1530
employees worldwide, Orion runs 15 global production sites and four
Applied Technology Centers. For more information please visit our
website www.orioncarbons.com.

Forward Looking Statements

This document contains certain forward-looking statements with respect
to our financial condition, results of operations and business,
including those in the “Update on Production Footprint Alignment and
2016 Full Year Outlook” and “Quarterly Business Results” sections above.
These statements constitute forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are statements of future
expectations that are based on management’s current expectations and
assumptions and involve known and unknown risks and uncertainties that
could cause actual results, performance or events to differ materially
from those expressed or implied in these statements. Forward-looking
statements include, among others, statements concerning the potential
exposure to market risks, statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and assumptions
and statements that are not limited to statements of historical or
present facts or conditions. Some of these statements can be identified
by terms and phrases such as “anticipate,” “believe,” “intend,”
“estimate,” “expect,” “continue,” “could,” “should,” “may,” “plan,”
“project,” “predict” and similar expressions. Factors that could cause
our actual results to differ materially from those expressed or implied
in such forward-looking statements include those factors detailed under
the captions “Note Regarding Forward-Looking Statements” and “Risk
Factors” in our Annual Report on Form 20-F for the year ended December
31, 2015 and in Note 9 to our unaudited interim condensed consolidated
financial statements as at September 30, 2016 regarding contingent
liabilities, including litigation. You should not place undue reliance
on forward-looking statements. Each forward-looking statement speaks
only as of the date of the particular statement. New risk factors and
uncertainties emerge from time to time and it is not possible for our
management to predict all risk factors and uncertainties, nor can we
assess the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. We undertake no obligation to publicly update or revise any
forward-looking statement - including those in the “2016 Full Year
Outlook” and “Quarterly Business Results” sections above - as a result
of new information, future events or other information, other than as
required by applicable law.

Interim condensed consolidated income statements

of Orion Engineered Carbons S.A. for the three and six months
ended September 30, 2016 and 2015 - unaudited

Three Months

Ended

Sep 30, 2016

Three Months

Ended

Sep 30, 2015

Nine Months

Ended

Sep 30, 2016

Nine Months

Ended

Sep 30, 2015

In EUR k

In EUR k

In EUR k

In EUR k

Revenue

259,682

278,660

753,818

851,411

Cost of sales

(176,929

)

(204,512

)

(502,532

)

(609,539

)

Gross profit

82,753

74,148

251,286

241,872

Selling expenses

(28,601

)

(27,136

)

(83,879

)

(80,627

)

Research and development costs

(3,654

)

(2,460

)

(10,718

)

(10,525

)

General and administrative expenses

(17,187

)

(14,591

)

(50,803

)

(45,291

)

Other operating income

533

3,312

1,602

4,987

Other operating expenses

(2,533

)

(6,133

)

(11,490

)

(11,120

)

Restructuring expenses

(27,900

)

—

(27,900

)

—

Operating result (EBIT)

3,411

27,140

68,098

99,296

Finance income

6,214

13,555

19,036

21,502

Finance costs

(15,609

)

(27,478

)

(46,080

)

(62,663

)

Share of profit or loss of joint ventures

121

121

298

371

Financial result

(9,274

)

(13,802

)

(26,746

)

(40,790

)

Profit before income taxes

(5,863

)

13,338

41,352

58,506

Income taxes

2,023

(1,286

)

(15,337

)

(17,120

)

Profit for the period

(3,840

)

12,052

26,015

41,386

Earnings per Share (EUR per share), basic

(0.06

)

0.20

0.44

0.69

Weighted average number of ordinary shares (in

thousands)

59,320

59,635

59,364

59,635

Earnings per Share (EUR per share), diluted

(0.06

)

0.20

0.43

0.69

Weighted average number of diluted ordinary shares

(in thousands)

59,775

59,949

59,819

59,741

Interim condensed consolidated statement of financial position

of Orion Engineered Carbons S.A. as at September 30, 2016 and
December 31, 2015 – unaudited

Sep 30, 2016

Dec 31, 2015

ASSETS

In EUR k

In EUR k

Non-current assets

Goodwill

48,512

48,512

Other intangible assets

80,584

94,803

Property, plant and equipment

370,579

385,856

Investment in joint ventures

4,536

4,657

Other financial assets

1,359

3,049

Other assets

2,910

3,698

Deferred tax assets

59,848

55,254

568,328

595,829

Current assets

Inventories

107,936

105,111

Trade receivables

178,614

172,123

Other financial assets

4,461

3,126

Other assets

21,044

20,321

Income tax receivables

4,342

8,750

Cash and cash equivalents

64,735

65,261

381,132

374,692

949,460

970,521

Sep 30, 2016

Dec 31, 2015

EQUITY AND LIABILITIES

In EUR k

In EUR k

Equity

Subscribed capital

59,635

59,635

Treasury shares

(3,415

)

—

Reserves

(37,413

)

(52,823

)

Profit or loss for the period

26,015

42,874

44,822

49,686

Non-current liabilities

Pension provisions

56,953

44,994

Other provisions

14,098

15,456

Financial liabilities

598,685

650,782

Other liabilities

598

138

Deferred tax liabilities

39,302

40,052

709,636

751,422

Current liabilities

Other provisions

55,105

38,057

Trade payables

96,100

94,213

Other financial liabilities

12,393

4,750

Income tax liabilities

12,455

16,443

Other liabilities

18,949

15,950

195,002

169,413

949,460

970,521

Interim condensed consolidated statements of cash flows of

Orion Engineered Carbons S.A. for the three and six months
ended September 30, 2016 and 2015 – unaudited

Three Months

Ended

Sep 30, 2016

Three Months

Ended

Sep 30, 2015

Nine Months

Ended

Sep 30, 2016

Nine Months

Ended

Sep 30, 2015

In EUR k

In EUR k

In EUR k

In EUR k

Profit for the period

(3,840

)

12,052

26,015

41,386

Income taxes

(2,023

)

1,286

15,337

17,120

Profit before income taxes

(5,863

)

13,338

41,352

58,506

Depreciation and amortization of intangible assets and property,

plant and equipment

30,724

17,593

70,276

52,045

Other non-cash expenses/(income)

1,426

(2,297

)

1,740

(2,297

)

(Increase)/decrease in trade receivables

(7,177

)

7,162

(4,681

)

27,356

(Increase)/decrease in inventories

(10,101

)

4,930

(4,081

)

16,982

Increase/(decrease) in trade payables

8,050

(17,445

)

12,319

(20,522

)

Increase/(decrease) in provisions

21,456

2,946

15,517

(8,153

)

Increase/decrease in other assets and liabilities that cannot be

allocated to investing or financing activities

3,369

(6,691

)

5,331

(4,119

)

Finance income

(6,214

)

(13,555

)

(19,036

)

(21,502

)

Finance costs

15,609

27,478

46,080

62,663

Cash paid for income taxes

(6,426

)

(3,328

)

(17,128

)

(8,865

)

Cash flows from operating activities

44,853

30,131

147,689

152,094

Cash paid for the acquisition of intangible assets and property,

plant and equipment

(10,151

)

(9,478

)

(48,167

)

(40,823

)

Cash flows from investing activities

(10,151

)

(9,478

)

(48,167

)

(40,823

)

Share buyback

—

—

(3,415

)

—

Repayments of borrowings

(21,796

)

(1,795

)

(45,404

)

(5,406

)

Cash payments of current financial liabilities

6,779

(4,067

)

6,745

(7,599

)

Interest and similar expenses paid

(11,827

)

(9,646

)

(30,726

)

(32,184

)

Interest and similar income received

1,668

198

2,014

1,324

Dividends paid to shareholders

(10,000

)

(10,000

)

(29,994

)

(30,000

)

Cash flows from financing activities

(35,176

)

(25,310

)

(100,780

)

(73,865

)

Change in cash

(474

)

(4,657

)

(1,258

)

37,406

Change in cash resulting from exchange rate differences

270

(2,501

)

732

(2,090

)

Cash and cash equivalents at the beginning of the period

64,939

113,018

65,261

70,544

Cash and cash equivalents at the end of the period

64,735

105,860

64,735

105,860

Reconciliation of Non-IFRS Financial Measures

In this release we refer to Adjusted EBITDA, Contribution Margin and
Adjusted EPS, which are financial measures that have not been prepared
in accordance with International Financial Reporting Standards as issued
by the International Accounting Standards Board (“IFRS”) or the
accounting standards of any other jurisdiction and may not be comparable
to other similarly titled measures of other companies. Adjusted EBITDA
is defined as operating result (EBIT) before depreciation and
amortization, adjusted for acquisition related expenses, restructuring
expenses, consulting fees related to group strategy, share of profit or
loss of joint venture and certain other items. Adjusted EBITDA is used
by our management to evaluate our operating performance and make
decisions regarding allocation of capital because it excludes the
effects of certain items that have less bearing on the performance of
our underlying core business. Our use of Adjusted EBITDA has limitations
as an analytical tool, and you should not consider it in isolation or as
a substitute for analysis of our financial results as reported under
IFRS. Some of these limitations are: (a) although Adjusted EBITDA
excludes the impact of depreciation and amortization, the assets being
depreciated and amortized may have to be replaced in the future and thus
the cost of replacing assets or acquiring new assets, which will affect
our operating results over time, is not reflected; (b) Adjusted EBITDA
does not reflect interest or certain other costs that we will continue
to incur over time and will adversely affect our profit or loss, which
is the ultimate measure of our financial performance and (c) other
companies, including companies in our industry, may calculate Adjusted
EBITDA or similarly titled measures differently. Because of these and
other limitations, you should consider Adjusted EBITDA alongside our
other IFRS-based financial performance measures, such as consolidated
profit or loss for the period.

Contribution Margin is calculated by subtracting variable costs (such as
raw materials, packaging, utilities and distribution costs) from our
revenue. We believe that Contribution Margin and Contribution Margin per
Metric Ton are useful because we see these measures as indicating the
portion of revenue that is not consumed by such variable costs and
therefore contributes to the coverage of all other costs and profits.

Adjusted EPS is defined as profit or loss for the period adjusted for
acquisition related expenses, restructuring expenses, consulting fees
related to group strategy, certain other items (such as amortization
expenses related to intangible assets acquired from our predecessor and
foreign currency revaluation impacts) and assumed taxes, divided by the
weighted number of shares outstanding. Adjusted EPS provides guidance
with respect to our underlying business performance without regard to
the effects of (a) foreign currency fluctuations, (b) the amortization
of intangible assets which other companies may record as goodwill having
an indefinite lifetime and thus no amortization and (c) our start-up and
initial public offering costs. Other companies may use a similarly
titled financial measure that is calculated differently from the way we
calculate Adjusted EPS.

We define Net Working Capital as the total of inventories and current
trade receivables, less trade payables. Net Working Capital is a
non-IFRS financial measure, and other companies may use a similarly
titled financial measure that is calculated differently from the way we
calculate Net Working Capital.

The following tables present a reconciliation of each of Adjusted EBITDA
and Adjusted EPS to the most directly comparable IFRS measure:

Reconciliation of Adjusted EBITDA to profit or loss

Three Months Ended

Sep 30,

For the Nine Months

Ended Sep 30,

in EUR k

2016

2015

2016

2015

Adjusted EBITDA

55,425

48,012

167,128

157,862

Share of profit of joint venture

(121

)

(121

)

(298

)

(371

)

Restructuring expenses (1)

(17,603

)

—

(17,603

)

—

Consulting fees related to group strategy (2)

(297

)

—

(2,063

)

(182

)

Long Term Incentive Plan (LTIP)

(1,297

)

(411

)

(2,212

)

(411

)

Other adjustments (3)

(1,972

)

(2,747

)

(6,578

)

(5,557

)

EBITDA

34,135

44,733

138,374

151,341

Depreciation, amortization and impairment of intangible assets and
property,

plant and equipment (4)

(30,724

)

(17,593

)

(70,276

)

(52,045

)

Earnings before taxes and finance income/costs (operating result
(EBIT))

3,411

27,140

68,098

99,296

Financial result

(9,274

)

(13,802

)

(26,746

)

(40,790

)

Income taxes

2,023

(1,286

)

(15,337

)

(17,120

)

Profit for the period

(3,840

)

12,052

26,015

41,386

(1)

Restructuring Expenses for the three and nine months ended September
30, 2016 relate to the strategic realignment of the worldwide Rubber
footprint, resulting in a decision by the management of the OEC SAS,
Ambès, France to cease production by December 31, 2016. Expenses
comprise personnel related costs of €6.6 million and demolishing,
side remediation and securing as well as accrued other expenses for
the cessation of €11.0 million.

(2)

Consulting fees related to the Group strategy mainly relate to the
formulating and executing of the strategic realignment of the
worldwide Rubber footprint.

(3)

Other adjustments (for items with less bearing on the underlying
performance of the Company's core business) in the three months
ended September 30, 2016 primarily relate to costs of €0.7 million
in connection with our EPA enforcement action and cost of €0.5
million associated with the integration OECQ, which was acquired in
the last quarter of 2015. Another €0.6 million are related to cost
incurred during a production disruption in the Ambès, France plant.
Other adjustments in the nine months ended September 30, 2016
primarily relate to costs of €3.5 million associated with our EPA
enforcement action (including accrued expenses for penalties and
mitigation projects), €1.6 million in connection with the OECQ
integration as well as €0.5 million related to expenses recorded for
the deductible of insurance claims arising from the flooding in our
Orange, Texas plant. Another €0.6 million of expenses are related to
cost incurred during a production disruption in the Ambès, France
plant. Other adjustments in the three and nine months ended
September 30, 2015 primarily relate to costs associated with our EPA
enforcement action.

(4)

Includes €10.3 million impairment of fixed assets at our Ambès,
France plant for the three and nine months ended September 30, 2016
following the decision to cease production by December 31, 2016.

Reconciliation of Adjusted EPS to EPS

Adjusted EPS

Three Months Ended

Sep 30,

in EUR k

2016

2015

Profit for the period

(3,840

)

12,052

Long Term Incentive Plan (LTIP)

1,297

411

Add back other adjustment items and Ambès, France impairment 1

30,169

2,747

Add back amortization of acquired intangible assets

3,270

3,264

Add back foreign exchange rate impacts to financial result

117

4,239

Amortization of transaction costs

750

826

Release of transaction costs due to repayment

378

—

Tax effect on add back items at 35% estimated tax rate

(12,593

)

(4,599

)

Adjusted profit or loss for the period

19,548

18,940

Adjusted EPS 2

0.33

0.32

Total add back items

23,388

6,888

Impact add back items per share

0.39

0.12

+ Earnings per Share (EUR per share), basic

(0.06

)

0.20

= Adjusted EPS 2

0.33

0.32

1) For the three months ended September 30, 2016: €27,900k
Ambès, France restructuring expenses, €297k consulting fees related to
group strategy and €1.972k other adjustments, for the three months ended
September 30, 2015: €2,747 other adjustments

2) Based upon weighted number of shares outstanding, which
was 59,320k for the three months ended September 30, 2016 and 59,635k
for the three months ended September 30, 2015.

Forward-looking Adjusted EBITDA and Adjusted EPS included in this
release are not reconcilable to their respective most directly
comparable IFRS measure without unreasonable efforts, because we are not
able to predict with reasonable certainty the ultimate amount or nature
of adjustment items in the remainder of the fiscal year. These items are
uncertain, depend on many factors and could have a material impact on
our IFRS reported results for the guidance period.